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We keep you up-to-date on the latest tax changes and news in the industry.
Senate Advances Major Changes to Solar Panel Tax Incentives - What Just Happened?
On June 30, the U.S. Senate dramatically reshaped clean energy incentives as part of its latest “mega tax-and-spending” bill. Here’s the current breakdown:
Rolling Back Key Credits
Senate Republicans pushed through language that would end the federal tax credits for solar and wind projects placed in service after December 31, 2027—as opposed to merely reducing incentives for newly constructed projects. This takes a harsher route than earlier drafts.
New Excise Tax on Solar & Wind
A novel excise tax would hit projects that rely on components from prohibited foreign sources—like Chinese-made parts—even if they’re already under construction.
Residential Solar Credit Repealed
On the chopping block: the 25D credit, which gives homeowners a dollar-for-dollar credit on residential solar installations, terminated entirely after this calendar year.
Reactions: "A Death Sentence" for Clean Energy?
Sen. Ron Wyden (D-OR) called it a “death sentence for America’s wind and solar industries,” warning of higher utility bills and halted renewable projects.
Elon Musk tweeted it was “utterly insane and destructive,” saying it “gives handouts to industries of the past while severely damaging industries of the future”.
The American Clean Power Association and Solar Energy Industries Association criticized the bill as a direct assault on clean energy innovation, American jobs, and grid stability.
Yet, proponents—and even the U.S. Chamber of Commerce—defend aspects of the bill, pointing to boosted support for fossil fuels, nuclear energy, and a crackdown on foreign dependencies.
Conflicting Signals for Investors & Developers
Markets painted a mixed picture:
Shares of domestic-focused solar firms like First Solar surged ~7%, Sunrun ~8%, and Fluence ~3%, riding optimism around protectionist supply-chain provisions.
Other renewable stocks—like Enphase and NextEra—slipped 3–6%, reflecting concern over the broader rollback.
Analysts caution, however, that these protections may only benefit a narrow section of the industry, leaving many projects vulnerable .
Ongoing Senate Vote-a-Rama and Potential Reversals
The Senate is currently in the thick of a marathon “vote‑a‑rama,” with Sen. Lisa Murkowski (R‑AK), Joni Ernst, Chuck Grassley, and others proposing amendments to:
Shift from a rigid placed-in-service deadline back to a more flexible start-of-construction standard.
Remove the new excise tax on solar and wind.
Their chances hinge on securing 51 votes. If successful, it could soften or even reverse today’s harshest restrictions before reconciliation with the House.
Additional Context & What’s at Stake
These Senate changes represent a rapid reversal from the Inflation Reduction Act’s landmark solar and wind incentives, which helped spur over 150 GW of capacity and clear a massive boost in domestic clean energy manufacturing.
Advocates warn that removing these tax credits—or making them contingent on supply chains—risks stalling U.S. clean energy deployment, driving up electric bills, and conceding global leadership in renewables.
What’s Next
Final Senate vote expected soon, likely July 1 or July 2.
If passed, the bill moves to reconciliation with House lawmakers.
The White House aims for a signature by July 4, but amendments may shift the timeline.
Key moderate Senators may rally for clemency on clean energy provisions.
Published July 1, 2025. This is a developing story. We'll continue to monitor Senate votes, amendment outcomes, and final reconciliation language as they unfold.
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